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Christine Lagarde, IMF boss, in Sarkozy financial scandal

Two French heads of the IMF in a row in legal scandals of different kinds begins to reflect embarrassingly on their country of origin. Christine Lagarde, when she was shortlisted for the job after Dominique Strauss-Kahn resigned in disgrace, did mention there was a risk of her past career resurfacing, but she got the post anyway.

PARIS — Christine Lagarde, the head of the International Monetary Fund, said on Wednesday that French prosecutors had placed her under formal investigation over a murky business affair that dates to her time as finance minister under former President Nicolas Sarkozy. …

She made the announcement a day after she was questioned for a fourth time in the investigation of her role in 2008 during an arbitration proceeding between the government and Bernard Tapie, a onetime cabinet minister and the former owner of the Adidas sportswear empire. Prosecutors had assigned Ms. Lagarde the status of “assisted witness” in the case. Placing her under formal investigation signals that prosecutors believe they have evidence of wrongdoing, but the charge of negligence hardly suggests high crimes.

Negligence by a government official that makes possible the misappropriation or embezzlement of public funds is punishable with a maximum fine of 15,000 euros, or $19,800, and up to one year in prison. …

In the French legal system, a formal investigation suggests prosecutors believe they have enough of a case that they may ultimately bring criminal charges and trial. …

A leaked letter in which IMF chief Christine Lagarde pledges her allegiance to former president Nicolas Sarkozy has caused bewilderment in France, raising further suspicions over fraud at the highest levels of government.

“Use me”, International Monetary Fund chief Christine Lagarde purportedly urged former president Nicolas Sarkozy, in a letter court investigators seized at her Paris home in March and which was leaked to the French press.

The undated and handwritten letter, a wholehearted pledge of allegiance to Sarkozy, has caused bemusement in France because of its strange choice of words, but has also rekindled concerns about Lagarde’s role in a controversial settlement that awarded millions of euros from the state to controversial French businessman Bernard Tapie in 2008.

The IMF chief was questioned for several hours on May 23 by prosecutors looking into whether the settlement was the result of fraud. More specifically, investigators are probing whether Tapie received the payout thanks to his cozy relationship with the Sarkozy administration – which included Lagarde as finance minister.

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However, the leaked letter – in which she tells Sarkozy “Use me for as long as it suits you and suits your plans and casting call” – has thrust her back into the spotlight, calling her impartiality into question and showering her with ridicule for the unusual style and vocabulary used.

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A translation of the full text originally published on the website of daily Le Monde follows below.

Dear Nicolas, very briefly and respectfully,

1) I am by your side to serve you and serve your plans for France.

2) I tried my best and might have failed occasionally. I implore your forgiveness.

3) I have no personal political ambitions and I have no desire to become a servile status seeker, like many of the people around you whose loyalty is recent and short-lived.

4) Use me for as long as it suits you and suits your plans and casting call.

5) If you decide to use me, I need you as a guide and a supporter: without a guide, I may be ineffective and without your support I may lack credibility.

With my great admiration, Christine L.

Former French President Nicolas Sarkozy gave an hour-long primetime interview on France2 Sunday evening, after announcing Friday in a Facebook post that he is officially returning to political life after his defeat in the 2012 presidential elections: here.

Christine Lagarde, the head of the International Monetary Fund, is reportedly facing trial in France over a €400 million (£290 million) payout to businessman Bernard Tapie, according to French media: here.